The goal of the Micro Loan Program is to aid start-up or expanding businesses that hire persons in the low and moderate income level through creation or retention of jobs.

If a person establishes his or her business with no other person hired, then the person receiving the assistance must be a low to moderate income person at the time of assistance. If a business expansion is proposed, the total employment must not exceed five.

For the purpose of being considered a created job, a job must be a new part-time or full-time job enabling the person to operate an existing “sideline” activity to become their principle occupation. Also in the case of formation of a micro-enterprise expected to involve several positions, it would not be necessary that the owner be a low or moderate income person if at least 51% of the jobs overall, computed one full-time equivalent basis, will be held by or available to low and moderate income persons.

In cases where assistance is provided to an existing micro-enterprise and the claim is that one or more jobs are being retained, documentation the job(s) would be lost if unassisted, must be fulfilled. Low to moderate income benefit must be documented for retained jobs according to prescribed guidelines of the Kansas Department of Commerce and Housing Development Division.

Said loan may be used for infrastructure improvements, land acquisition, site preparation, building construction or renovation, machinery, equipment, lease payments, inventory, payroll and working capital.

Community Development Block Grant (CDBG) funds may not be used for bailout or financial restructuring. The projects when funded must lead to the creation or retention of permanent jobs in Barber County. The loans awarded shall have a maximum term of the following categories:

· Working capital for 1 to 5 years
· Machinery and equipment for a period of 1 to 10 years
· Land and buildings for a period of no more than 10 years

The maximum loan size of the Micro Loan portion shall be $25,000 to be used by an entity with five or fewer employees, one or more of whom shall own the business. The Micro Loan portion of the loan obtained through the bank will bear interest of two points below New York prime rate at the time the loan is made and will be adjusted annually on January 1.